PART 14·

INDIVIDUAL DATA

PREPARED BY THE STAFFS OF THE TREASURY AND THE JOINT COMMIT'rEE ON INTERNAL REVENUE TAXATION APRIL 1951

UNITED STATES GOVERNMENT PRINTING OFFICE 81736 WASHINGTON: 1951

TABLE 1.- Individual income taxes of the United States, 1913 to 1950 RATES, EXEMPTIONS, AND CREDITS

Revenue Act Revenue Act Description Taxes in effect Act of Oct. of 1916 (Sept. I Act of Mar. I Rovonu,of 1917 (Oct. Ad of 1918 (Feb. Revenue Act Revenue Act Revenue Act Dec. 31, 1913 22, 1914 8, 1916) . 3,1917 3,1917) 24,1919) of 1921 of 1924 of1926 ------Personal exemptions: Married or bead of family $4,000 ______No cbange __ No cbange 1_____ No change __ $2,000 ______No cbange ______$2,500 2 ______$2,500 ______$3,500. Single ______$3,000_ ------No cbange __ No cbange ______No cbange __ $1,000 ______No change ______No cbange ______No cbange ______$1,500. $200 ______$40L ______Credit for dependents ______------No change ______No cbange ______No cbange. Normal tax rate: 2% ______1st $2,000 of net income in excpss of 1% _-______No cbange __ 2% ______No cbange __ No cbange ____ 6%3 ______4% 4______lYz%. certain credits. 2d $2,000 of net income in excess of 1% ______No cbange __ 2% ______No change ___ 4% ______6%3 ______4%4 ______2% ______lYz%. certain credits. 1% ______Next $4,000 of net income in excess of No cbange __ 2% ______No change __ 4% ______12% 3______8% 4______~----- 4% ______*3%. certain credits. Over $8,000 of net income in excess of 1% ______No cbange __ 2% ______No cbange __ 4% ______12% 3______8%4 ______6% ______5%. certain credits. Surtax: Minimum rate ______1% ______No cbange __ No cbange ______No cbange __ No cbange ____ No cbange ______No cbange 4 0____ 1% ______No cbange. Maximum rate ______6% ______No change __ 13% ______No cbange __ 63% ______65% ______50%4 0______40% ______20%. Minimum rate applies to portion of $20,000-$50,000_ . No cbange __ $20,000-$40,000 ___ No cbange __ $5,000--$7,500 ___ $5,000--$6,000 _____ $6,000-$10,000 °__ $10,000-$14,000 ___ No change. surtax net income. Maximum rate applies to portion of Over $500,000 ____ No cbange __ Over $2,000,000 __ No change __ ' No change ____ Ov~r $1,000,000 __ Over $200,000 s__ Over $500,000 ____ Over $100,000. surtax net income. Dividends ______Exempt from No change __ No cbange ______No change __ No cbange ____ No cbange ______No change ______No cbange ______No change. normal tax. Earned income credit 8 ______-- -- _ -- -1- ______------25% of normal 25% of total tax tax on earned on earned net llPt income. income.

See footnotes at end of table.

~ TABLE 1.-Individual income taxes of the United States, 1913 to 1950- Continued ~

Revenue Act of- Description 1928 1932 1934 1935 1936 1937 1938 1939 1940

Personal exemptions: Married or head offamily ______$3,500 ______$2,500 ______No change ______No change ______No change ______No change __ No change __ No change __ $2,000. Single ______------$1,500 ______$1,000 ______No change ______No change ______No change ______No change __ No change __ No change __ $800. Credit for dependents ______$40L ______No change ______No change ______No change ______No change ______No change __ No change __ No change __ No change. Normal tax rate: 1st $4,000 of net income in excess of cer­ 1%% 7______4% ______No change ______No change ______No change ______No change __ No change __ No change 8_ No change.9 tain credits. 4% ______2d $4,000 of net income in excess of cer­ 3% 7______8% ______No change ______No change ______No change __ No change __ No change 8_ No change.9 tain credits. Over $8,000 of net income in excess of 5% 7______8% ______4% ______No change ______No change ______No change __ No change __ No change 8_ No change.o certain credits. Surtax: Minimum rate ______1% ______No change ______4% ______No change ______No change ______No change __ No change __ No change 8_ No change.9 10 Maximum rate ______20% ______55% ______59% ______75% ______No change ______No change __ No change __ No change 8_ No change.9lO z Minimum rate applies to portion of $10,000-$14,000 ___ $6,000-$10,000 ____ No change ______No change ______No change __ No change __ No change 8_ No change. t;j $~6e ------~ surtax net income. H Maximum rate applies to portion of Over $100,000 ____ Over $1,000,000 __ No change ______Over $5,000,000 __ No change ______No change __ No change __ No change 8_ No change. t::;j surtax net income. ~ Dividends 11 ______1 Exempt from Nochange ______1 Nochange ______1 Nochange ______1 Not exempt I No change __ 1 No change __ 1 No change_-I No change. t"l normal tax. from normal tax. z Earned income credit 6 ______1 25% of total tax None ______-' 10% of amount of 1 No change ______1 No change ___ ~_.1 No change_-I No change_-I No change_-I No change. oC".l on earned net earned net income ~ income. but not in excess t:rj of 10% of amount of net income to be credited against ~ net income for nor- t::1 mal tax. ~ Revenue Act of- Description 1941 1942 1943 12 1944 13 1945 1948 51

Personal exemptions: Married or head offamily 14 ______$1,500 ______$1,200 ______No change 15 ______$1,00016 ______$1,000 17 ______$1,200 18 ______Cre:i~:~;de-;;~d-;~t;--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~-~h~~;;~~~~ ~~~~ t~~~~~~~~~~~~~ ~~ ~::~~: ::~~~~~~ ~~~ ::-I;~~~~~~~~~~ ~~~ :~~~~~~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~ Additional exemptions: 20 For persons 65 years of age or over______~_ 600 ______No change.

NO!~ t!: b;=~~~~ii~--t~-~;t-~~~~;-~-~~~~~~-~f-~~~t~~- -4%~~~~~~~~~~~~ -6%~~~~~:~~~~~~~~~~ -N~-~h~~;;~;--~~~~~ -3%~~~~~~~~~~~~~~ -T;~t~ti~;-;;t-e=3%---~~ ~~-~h~~;;~~~~~~~~ ~~.~hange/ credits.

SurtMinimumax: rate ______6% ______13% ______No change 16 ______20% ______Tentative rate-17% __ No cbange ______17%.22 ~ Maximum rate ______77% ______82% ______No change 16 ______91% 23 ______Tentative rate-88%23_ No change 14 ______88%.2223 fj!

Minimum rate applies to portion of surtax net income ______0-$2,000 ______No change ______No change 15 ______0-$2,000 ______No changc ______No change ______No change. q 110 . Maximum rate applies to portion of surtax net income ______No change_ ___ Over $200,000 ______No change 16______Over $200,000 ____ No change ______No change ______No change Reductions from combined tentative normal tax and surtax: First $400 ______------_-- ___ ------_.------___ 1__ ------1------1------1------1 5% ______--- ______117% __ --.------____ I (22). Next $99,600 __ ---- __ ----- _-- _-- ---_-- --_-- __ ----- ______1___ ------1------1------1------I 5% ______12% ______(22). Over $100,00o ___ -- ___ -- _------'-----___ ------____ 1_ ------1------1------1------I 5% ______9.75% ______(22). Victory tax __ --______--_-- ______-- ___ --___ 1_ ------I 5% of Victory tax 3% of Victory tax Repealed. net income in net income in excess of $624, excess of $624,16 less certain credits.24 Dividen~s------:-;------______1 No change ____ 1 No change ______1 No Change ____ ~ ___ r No chaIigll ______1 No change ______1 No change ______1 No change. Earned-mcome credIt ______No change ____ No change ______Repealed.

I Under the and subsequent acts the personal exemption allowed to married such tax by taxpayers not made substantially current in their payments through withholding. persons was also allowed to heads of families. To provide [or transition to current payments, the act in general canceled 75% of either the 1942 2 For individuals with net income in excess of $5,000 thc personal exemption is $2,000. or 1943 tax, whichever was the lesser. 3 For the calendar years 1919 and 1920 the normal tax rates were 4% on the first $4,000 of normal 13 Individual Income Tax Act of 1944. tax net income and 8% on the balance of such net income over $4,000. 14 Subsequent to the act of Oct. 22, 1914, and prior to the Individual Income Tax Act of 1944, the 4 Tax for 1923 reduced 25% by credit or refund under section 1200 (a), . personal exemption allowed to married persons was also allowed to heads of families. Ii For calendar years 1922 and 1923. 16 The changes in individual income-tax exemptions and rates made by the , 6 Undcr the acts of 1924 to 1928 the credit was against tax; under the act of 1932 no credit was intended to be applicable to the taxable year 1944, were superseded by the provisions of the Z allowed for the years 1932 and 1933; and under the 1934 and subsequent acts the credit is against Individual Income Tax Act of 1944 before they became effective. t:l net income. In the 1924 act the credit was limited to 25% of normal tax on ordinary net income 16 Surtax exemptions. For surtax, each taxpayer was allowed an exemption of $500, plus ~ aud in the 1926 and 1928 acts to the sum of 25% of normal tax on ordinary net income and 25% of H $500 for his spouse and $500 for cach dependent. The normal tax exemption was $500. However, t:l surtax on earned net income. The amouut of net income accounted as earned income for purposes if husband and wife combined their income in a joint return, the normal tax exemption was $500 of the earned income credit, is as follows: Under the 1924 act all net income up to $5,000, whether plus the amount of the smaller of the two incomes, but not more than $1,000 for both. ~ ~ earned or not, and up to $lO,OOJ, if earned; under the 1926 act all net income IIp to $5,000, whether 17 For 1946 and.subsequent years, the exemptions are allowed for both normal tax and surtax. earned or not, and up to $20,000, if earned; under the 1928 act all net income up to $5,000, whether 18 Begiuning with the taxable year 1948 married couples filing joint returns were allowed to z earned or not, and up to $30,000, if earned; uuder the 1934 and subsequent acts all net income up divide their combined incomes equally in computing their income taxes. ("} to $3,000, whether earned or not, and up to $14,000, if earned. A maximum of 20% of net profit 19 The Individuallncom~ Tax Act of 1944 eliminated the former requirement that a "depend­ o from trade or business involving personal services may be included within the earned income ent" must be under 18 years old or incapable of self-support. Under the 1944 act the taxpayer ~ ~ category. may claim as a dependent any close relative whose income is less than $500 and who received I 7 Rates for 1929 reduced to ~%, 2%, and 4%, respectively. more than half of his support from· the taxpayer, provided the relative is a resident of the United 8 8 In the case of compensation (a) received for persoual services rendered by an individual in his States, Canada, or lVIexico. ~ individual capacity, or as a member of a partnership, and covering a period of five calendar years 20 Allowed to taxpayers and their spouses, but not allowed for dependents. or more from the beginning to the completion of such services (b) paid (or not less than 95% of 21 The additional exemption of $600 for the blind replaced the special $500 deduction for the blind t:l which is paid) only on the completion of such services, and (c) required to be included in gross provided by the Revenne Act of 1943, applicable to taxable years 1914-47. >- income of such individual for any taxable year beginning after December 31,1938, the tax attrib­ 22 The percentage reductions from tentative tax were eliminated for calendar year 1951 and :£ utable to such compensation shall not be greater than the aggregate of taxes which w~uld have other taxable years beginning after Sept. 30, 1950. For calendar Year 1950 the percentage reduc­ been paid had the income been received in equal portions in each of the years in the period. tions from tentative tax were reduced to the following: 13% on the first $400 of tentative tax; 9 For taxable years beginning after Dccember 31,1939, and before, JanulfY 1, 1945, the sum of the 9% on the next $99,600; and 7.3% on the amount in excess of $100,000. normal tax and surtax computed uuder the above rates shall be increased by a defense tax of 10% 23 The combined normal tax and surtax (before deduction of credits for foreign taxes, taxes of the amouut of the tax, limited, however, to 10% of the excess of the net income over the sum or withheld at source, and taxes withheld on w,ages) is subject to the following maximum effective the normal and surtax. rate limitations: Revcnue Act of 1944, 90%; Revenue Act of 1915, 85.5%; , 10 'While the minimum and maximum surtax rates have not been changed, the surtaxes have 77%; Revenne Act of 1950, for calendar year ' 1950, 80%, for calendar year 1951 and other taxable been increased on surtax net incomes in excess of $6,000 and not in excess of $100,000. From that years beginning after Sept. 30: 1950, 87%. point the rates of section 12 (b) 1. R. C. are retained. 24 Applicable to taxable year 1943 only. The exemption of $624 applied to every individual II A n excise tax of 5% was imposed by section 213 of the National Industrial Recovery Act, effective regardless of marital status. However, in the case of a husband and wife filing a joint return, on dividends declared between June 16, 1933, and December 31, 1933 (or in the case of taxpayers if the Victory tax net income of one spouse was less than $624, the total exemption was limited on a fiscal-year basis, dividends declared until the~ndof the fiscal year 1933). Under the Revenue to $624 plus the Victory tax net income of such spouse. The following credits were allowed against Acts of 1928 and 1932 the exemption appl~edto l1ividends received from domestic and certain the tax: 25% of the tax if single or 40% if nprried, plus in either case 2% for each dependent. foreign corporatio~s; under the Revenue Act of '1934 the exemption applied only to dividends The amount of the credits were limited, however, ~o $500 if single, $1,000 if married, plus $100 received from domestic corporations. for each dependent. The credits as provided by the Revenne Act of 1942 were to be postwar 12 In addition to'the Revenue Act of 1943, the Congress enacted the Current Tax Payment credits, allowable currently only under specified conditions, but they were converted into auto­ Act of 1943, which revised the system of individual income7tax payment but made no change in matic current credits by Public Law 178, 78th Congress, approved Oct. 28, 1943. The amouut the rates, exemptions, and credits. The act provided for current collection of tax liability by of Victory tax (before tax credits) was limited to the excess of 90% of net income over the regular • collection at source, and by filing of declaration~ of el3timated tax and the current payment of income tax liability. CAj 4 INDIVIDUAL INCOME,-TAX DATA

T AB LE 2.- 1 ndividual income tax collections compared with total internal 1'evenue, fiscal years 1939- 52

Individual in- Individual in- Individual in- Total internal come tax as per- Individual in- Total internal come tax as per- Fiscal year come tax collec- revenue collec- cent of total in- Fiscal year come t ax C'lUec- revenue collec- cent of total in- tions (millions) tions (millions) ternal revenue tions (mill: 11 8) tions (millions) ternal revenue

1939 ______$1,029 $5, 162 19. 9 1947 ______$19, 343 $39, 108 49. 5 1940 ______982 5,323 18.4 1948 ______20,998 41,865 5,0.2 194 L ______1,418 7,352 19.3 1949 ______18,052 40,463 44. 6 1942 ______3, 263 13, 030 25.0 1950 ______17,153 38,957 44. 0 1943 ______6, 630 22, 369 29. 6 195L ______{ 122,900 150,500 145.3 1944 ______18, 261 40, 120 45. 5 2 23, 100 251,000 245.3 1945 ______343.7 19,034 43,800 43. 5 1952 ______{ 327,500 363,000 1946 ______18, 705 40, 672 46. 0 227,800 365,500 242.4

1 Estimates of the Treasury Department. 2 Estimates of the staff of the Joint Committee on Internal Revehue Taxation. 3 Estimates of the Treasury Department. Assuming the 4 percentage point increase in rates proposed by the Secretary of the Treasury wcre adopted effective July 1, 1951, individual income tax collections in the fiscal year 1952 would amount to $31.3 billion. If the corporate income and capital gains proposals becamll effective Jan. 1, 1951, and the excise tax proposals became effective July 1,1951, total intcrnal revenue collections would amount to $71.7 billion. Thus, under the Secretary's proposals, individual income tax collections would still account lor 43.7.percent of total internal revenue collections in the fiscal year 1952. - --

TABLE 3.-Effective rates oj individual income tax, 1913 to 1951

A .-SINGLE PERSON WITH NO DEPENDENTS [In percent]

Relected amount of net income Revenue act Income year $525 $600 $800 $900 $1,000 $2,000 $3,000 $5,000 $6,000 - $8,000 $10,000 ------·--1------1913 ______3/1/13-12/31/15 ------0.4 O. 5 O. 6 O. 7 1916 ______1916 ------.8 1.0 1.3 1.4 1917 ______1917 ------1.0 1.3 2.4 2. 8 3.4 4. 0 1918 ______1918 ------3. 0 4. 0 4. 8 6. 2 8. 1 9. 5 1919-20 ------2. 0 2. 7 3. 2 4. 2 5. 6 6. 7 192L ______1921 ------2. 0 2. 7 3. 2 4. 2 5. 6 6. 7 1922 ------2. 0 2. 7 3. 2 4. 0 5. 3 6. 0 1923 ------1.5 2. 0 2.4 3. 0 3. 9 4. 5 1924 ______1924 ------.8 1.0 1.2 1.5 1.9 2.3 1926 ______1925-27 ------.3 6 .8 . 9 1.3 1.5 1928 ______1928, 1930-31 ------.3 6 .8 .9 1.3 1.5 1929 ------1 .2 .3 . 4 .7 . 9 1932 ______1932-33 ------2. 0 2. 7 3. 2 4. 0 5. 3 6. 0 1934 ______1934-35 ------1.6 2. 3 2. 8 3. 6 4. 7 5. 6 1938 _____ 1936, 1936-39 ------1.6 2. 3 2. 8 3. 6 4. 7 5. 6 1940 ______------1940 1 ------0.04 0.4 2. 2 2. 8 3.4 4. 3 5. 6 6. 9 194L ______1941 O. 4 1.2 2. 1 5. 9 7.4 9.·7 10.8 12. 9 14. 9 1942 ______------1942 2 2.5 6. 5 7. 9 8. 9 13. 7 15. 7 18.4 19. 6 21. 8 23. 9 1943 23 2. 8 7. 8 9.4 10. 7 16. 7 19. 1 22. 1 23.4 25. 7 27.8 1944 4 ______1944-45 1. 1 3.8 8. 6 10. 2 11. 5 17.3 19.5 22. 1 23. 3 25.4 27.6 1945 ______1946-47 . 9 3. 2 7. 1 8.4 9. 5 14. 3 16. 2 18.4 19. 5 21. 5 23. 5 1948 ______1948-49 17.3 19.3 21. 2 1950 ______------4. 2 5. 5 6. 6 11. 6 13.6 16.2 1950 - -_ .... ------4. 4 5. 8 7. 0 12.2 14.3 16.9 18.0 20. 0 22.0 1951 ------5. 0 6.7 8. 0 14. 0 16.3 18. 9 20. 1 22. 3 24.4

See footnotes a t end of table. INDIVIDUAL INCOME-TAX DATA 5

TABLE 3.-Effective rates of individual income tax, 1913 to 1951-Continued

A.-SINGLE PERSON WITH NO DEPENDENTs-continued [In percent]

Selected amount of net income Revenue act Income year $15,000 $20,000 $25,000 $50,000 $75,000 $100,000 $500,000 $1,000,000 $5,000,000

1913 ______3/1/13-:-12/31/15 O. 8 O. 9 1. 1 1.5 2. 0 2. 5 5.0 6.0 6.8 1916 ______1916 1.6 1.7 2.0 2. 7 3. 3 3. 9 8.6 10. 0 13.8 1917 ______1917 5.1 6. 1 7. 3 10. 4 13. 3 16. 2 38. 5 47. 5 62. 8 1918 ______1918 11. 9 13. 8 15. 4 22. 3 28. 8 35. 2 64. 6 70. 3 75. 7 1919-20 8. 7 10.4 11. 8 18.5 24. 9 31. 3 60. 7 66. 3 71. 7 192L ______1921 8. 7 10. 4 11. 8 18.5 24. 9 31. 3 .60.7 66.3 · 71. 7 , 1922 7. 6 9. 0 10. 6 17.4 23. 9 30.2 52.1 55.1 57. 4 1923 5. 7 6. 8 7. 9 13. 1 17.9 22. 7 39. 1 41. 3 43.1 192L ______1924 3. 9 5. 2 6.5 12. 3 17.6 22. 7 39. 9 43. 0 45.4 1926 ______1925-27 2. 6 3. 5 4. 9 9. 9 13.6 16.1 23. 2 24. 1 24. 8 1928 ______. 1928, 1930-31 2.6 3. 5 4.4 9.3 13. 2 15. 8 23. 2 24.1 24. 8 1929 1.9 2. 8 3. 7 8. 5 12. 3 14.9 22.2 23.1 23. 8 1932 ______1932-33 7. 6 9. 0 10.6 17.4 23. 9 30. 2 52. 7 57.1 61. 8 193L ______1934-35 7. 4 9. 2 11. 2 18.7 25. 2 31. 4 53.0 57. 2 61. 9 1936, 1938 __ 1936-39 7.4 - 9. 2 11..2 18. 7 26. 0 33. 4 61. 0 68. 0 75. 8 1940 ______1940 1 9. 8 13. 3 17.0 29. 4 38.0 44. 3 66. 2 71. 8 78. 3 194L ______1941 20.0 24. 6 28. 9 41. 8 48. 6 53. 2 69.1 73. 3 78. 5 1942 ______1942 2 29. 1 34. 1 38. 5 51. 6 59. 2 64. 6 82. 9 85. 5 87. 5 1943 23 33.1 38.1 42. 6 56.1 64.0 69. 7 88. 4 5 90. 0 5 90.0 1944 4 ______1944-45 32. 9 37. 9 42. 4 55. 9 64. 0 69. 9 88. 9 590.0 590.0 1945 ______1946-47 28. 5 33. 2 37. 5 50. 3 58.0 63. 5 81. 6 84. 0 585.5 1948 ______1948-49 26. 0 30. 4 34.4 46.4 53. 6 58. 8 577.0 577.0 577.0 1950 ______1950 26. 9 31. 5 35. 6 48.0 55.4 60. 8 79. 2 580.0 580.0 1951 29. 7 34. 7 39. 2 52. 8 60. 9 66. 8 85. 9 587.0 587.0

See footnotes at end of table. 6 INDIVIDUAL INCOME,-TAX DATA

TABLE 3.-Effective rates of individual income tax, 1913 to 1951-Continued

B. MARRIED PERSON WITH NO DEPENDENTS [In percent]

Selected amount of net income Revenue act Income year $600 $800 $1,000 $2,000 $2,500 $3,000 $5,000 $6,000 $8,000 $10,000 ------

1913 ______"__ 3/1/13-12/31/15 ------o. 2 o. 3 0.5 O. 6 19H>- ______"__ 1916 ------.4 .7 1.0 1. 2 1917 _' ______" _ -'- 1917 ------o. 4 o. 7 "I. 6 2. 2 2. 9 3. 6 1918.: ______"__ · 1918 ------1. 2 2. 0 3. 6 4.2 6. 6 8. 3 1919-20 ------8 1. 3 2.4 2. 8 4. 6 5. 9 192 L ______1921 ------7 2. 0 2. 8 4. 6 5. 9 1922 ------7 2. 0 2.7 4. 3 .. 5 . 2 1923 ------5 1. 5 2. 0 3.2 3. 9 1924 ______,._ 1924 ------.3 8 9 1. 3 1. 7 1926 ______" 1925-27 ------.3 5 7 1.0 1928 ______1928, 1930-31 ------.3 5 7 1.0 1929 ------1 2 3 5 1932 _" ______-'- 1932-33 ------7 2.0 2. 3 3. 8 4. 8 1934 ______- __ 1934-35 ------3 1. 6 1.9 3. 1 4. 2 1936, 1938 ____ 1936--'-39 ------3 1. 6 1. 9 3. 1 4. 2 1940 ______-'- 1 1940 ------4 1.0 2. 2 2. 5 4. 0 5. 3 194L ______1941 ------~------2. 1 3. 6 4. 6 7. 5 8. 7 10. 9 13. 1 1942 ______2 1942 ------7.0 9. 3 10. 8 14. 9 16. 5 19. 2 21. 5 1943 23 O. 2 1.0 1. 5 9. 4 11. 9 13. 5 17. 9 19. 6 22. 3 24. 7 1 944 4 ______1944-45 5 1. 1 1.5 12. 3 14.4 15. 8 19. 5 21. 1 23. 6 25. 9 1945 ______1946-47 ------9. 5 11. 4 12. 7 16.0 17.4 19. 7 21. 9 1948 ______1948-49 ------6. 6 8. 6 10. 0 12. 6 13. 6 15. 1 16. 2 1950 ______1950 ------7. 0 9. 0 10. 4 13. 2 14. 3 15. 7 16. 9 1951 ------8. 0 10.4 12.0 15. 2 16. 3 17. 7 18. 9

See footnotes at end of table. INDIVIDUAL INCOME-TAX DATA 7

TABLE 3.-Effective rates of individual income tax, 1913 to 1951-Continued B. MARRIED PERSON WITH NO DEPENDENTs-Continued [In percen t 1

Selected amount of net income Revenuo act Income year $15,000 $20,000 $25,000 $50,000 $75,000 $100,000 $500,000 $1,000,000 $5,000,000

1913 ______3/1/13-12/31/ 15 0.7 0.8 1.0 1.5 2. 0 2.5 5.0 6.0 6.8 1916 ______1916 1.5 1.6 1.9 2.6 3.3 3. 9 8. 6 10. 3 13.8 1917 ______' , 1917 4.9 5.9 7.1 10.4 13.2 16.2 38.5 47.5 62. 8 1918 ______. 1918 11. 1 13.2 14.9 22.1 28.6 35. 0 64. 6 70. 3 75. 7 1919-20 8.2 10.0 11. 5 18.4 24. 8 31. 2 60. 6 66. 3 71. 7 192 L ______. 1921 8.2 10.0 11. 5 18.4 24. 8 31. 2 60. 6 66. 3 71. 7 1922 7. 1 8. 6 10. 2 17.3 23. 8 30. 1 52.1 55.1 57.4 1923 5.3 6.5 7.7 13.0 17.8 22. 6 39.1 41. 3 43.1 1924- _____ : 1924 3. 4 4.9 6.3 12.2 17.5 22. 6 39. 9 43. 0 45. 4 1926 ______' 1925-27 2. 1 3.1 4. 6 9. 8 13.5 16. 1 23. 2 24.1 24. 8 1928 ______1928, 1930-31 2.1 3. 1 4.1 9.2 13. 1 15.8 23. 2 24.1 24. 8 1929 1.5 2.5 3.5 8. 4 12.2 14. 9 22. 2 23. 1 23. 8 1932 ______1932-33 6.8 8.4 10. 1 17.2 23. 7 30. 1 52. 7 57.1 61. 8 1934 ______' 1934-35 6. 2 7.9 10. 0 17.7 24. 3 30. 6 52. 8 57.1 61. 8 1936, 1938 __ , 1936-39 6.2 7.9 10.0 17.7 25. 0 32. 5 60. 8 67. 9 75. 8 1940 ______1940 1 8. 4 11. 7 15.4 28. 3 37.0 43. 5 66. 0 71. 8 78. 3 194L ______1941 18.3 23.1 27.5 40.9 48. 0 52. 7 69. 0 73. 3 78. 5 1942 ______1942 2 27.0 32. 3 36.9 50. 7 58. 4 64. 1 82. 8 85. 4 87.5 1943 23 30. 2 35. 5 40. 1 54.2 62. 6 68. 6 88. 1 589.9 590.0 1944 4 ______1944-45 31. 3 36. 6 41. 2 55. 2 63.5 69. 4 88.8 590.0 II 90.0 1945 _____' __ 1946-47 27.0 32. 0 36. 3 49.6 57. 5 63.1 81. 5 84. 0 585.5 1948 ______1948-49 18.9 21. 2 23. 5 34. 4 41. 4 46. 4 71. 9 577.0 II 77. 0 1950 ______1950 19.6 22. 0 24. 3 35. 6 42. 8 48. 0 74. 1 79. 2 580.0 1951 21. 7 24.4 26._9 39. 2 47.1 52. 8 80.7 85. 9 587.0

See footnotes at end of table.

81736--51--pt. 14----2 8 INDIVIDUAL INCOME,-TAX DATA

TABLE 3.-Effective rates of individual income tax, 1913 to 1951-Continued

C. MARRIED PERSON WITH TWO DEPENDENTS [In percent]

-Selected amount of net income Revenue act Income year $600 $800 $1,000 $2,000 $2,500 $3,000 $5,000 $6,000 $8,000 $10,000 ------1------1------1----1-----1----1---- 1913 ______3/1/13-12/31/15 O. 2 O. 3 O. 5 O. 6 1916 ______1916 .4 .7 1.0 1.2 1917 ___ ...: ____ _ 1917 O. 1 O. 4 1.3 1.9 2. 7 3. 4 1918 ______1918 .2 1.2 3. 1 3. 8 6. 0 7. 8 1919-1920 .2 .8 2.1 2. 6 4. 2 5. 6 192L ______1921 1.4 2. 3 3. 8 5. 3 1922 1.4 2.1 3. 5 4. 6 1923 1.0 1.6 2. 6 3. 4 1924 ______1924 .5 .7 1.0 1.4 1926 ______1925-27 .2 .3 .5 .8 1928 ______1928, 1930-31 .2 .3 .5 .8 1929 . 1 . 1 .2 .4 1932 ______1932-33 1.4 1.8 3. 0 4. 2 1934 ______1934-35 1.0 1.4 2.3 3. 4 1936, 1938 ___ _ 1936-39 1.0 1.4 2.3 3. 4 1940 ______-' __ 1940 1 1.5 1.9 3. 1 4. 4 194L ______1941 . 5 1.9 5. 4 6. 6 9. 0 11. 2 1942 _____ ~ __ _ 1942 2 O. 7 4. 0 6. 4 11.8 13.5 16.5 19. 1 1943 2 3 O. 2 O. 9 1.4 2. 9 6. 4 8. 9 14. 6 16.3 19. 4 22. 1 1944 4 ______1944-45 .5 1. 1 1.5 2. 3 6. 4 9. 2 15. 1 16.8 19.8 22. 5 1945 ______1946-47 3. 8 6. 3 11. 8 13.3 16. 2 18.6 1948 __ "______1948-49 .7 3. 3 8. 6 10.0 12. 2 13.6 1950 ______1950 .7 3. 5 9'. 0 10. 4 12.7 14.2 1951 .8 ' . 4.0 10.4 12. 0 14. 4 15. 9

See footnotes at end of table. INDIVIDUAL INCOME-TAX DATA 9

TABLE 3.-Effective rates of individual income tax, 1913 to 1951-Continued C. MARRItD PERSON WITH TWO DEPENDENTS-Continued [In percent]

Selected amount of net income Revenue act Income year $15,000 $20;000 $25,000 $50,000 $75,000 $100,000 $500,000 $1,000,000 $5,000,000

1913 ______3/1/13-12/31/15 O. 7 O. 8 1.0 1.5 2. 0 2. 5 5.0 6.0 6. 8 1916 ______1916 1.5 1.6 1.9 2. 6 3. 3 3. 9 8. 6 10. 3 13. 8 1917 ______1917 4. 8 5. 8 7.1 10. 3 13.2 16. 2 38. 5 47. 5 62. 8 1918 ______1918 10. 8 12. 9 14. 7 22.0 28. 6 35.0 64. 6 70. 3 75. 7 1919-20 8.0 9. 8 11. 4 18.3 24. 8 31. 2 60. 6 66. 3 71. 7 192L ______1921 7. 8 9. 6 11. 3 18. 3 24. 8 31. 1 60. 6 66. 3 71. 7 1922 6.6 8. 3 10.0 17.2 23. 7 30.1 52.1 55.1 57.4 1923 5. 0 6. 2 7.5 12. 9 17.8 22. 6 39.1 41. 3 43.1 1924- ______1924 3. 2 4. 7 6.1 12.1 17.5 22. 5 39. 9 43.0 45. 4 1926 ______1925-27 1.9 2. 9 4. 5 9. 7 13. 4 16. 0 23. 1 24.1 24. 8 1928 ______1928, 1930-31 1.9 2. 9 4. 0 9. 1 13. 1 15. 7 23.1 24. 1 24. 8 1929 1.3 2. 4 3.4 8. 3 12. 2 14. 8 22. 2 23.1 23. 8 1932 ______1932-33 6. 4 8.1 9. 8 17. 1 23.6 30.0 52. 7 57.1 61. 8 1934 ______1934-35 5. 5 7. 3 9. 3 17.2 23. 9 30. 2 52. 7 57.1 61. 8 1936, 1938 __ 1936-39 5.5 7. 3 9. 3 17.2 24. 5 32. 0 60. 7 67. 8 75. 8 1940 ______1940 1 7. 5 10. 7 14. 3 27. 5 36. 4 42. 9 65. 9 71. 7 78. 3 194L ______1941 16.5 21. 4 25. 9 39. 9 47. 3 52. 2 68. 9 73. 2 78. 4 1942 ______1942 2 25. 1 30. 4 35. 3 49. 7 57. 7 63. 5 82. 7 85. 3 87. 5 1943 2 3 28.0 33. 5 38. 3 52. 8 61. 6 67. 8 88. 0 589.9 590.0 1944 4 ______1944-45 28. 4 33.9 38. 8 53. 7 62.4 68. 6 88. 6 590.0 590.0 1945 ______1946-47 - 24. 3 29. 5 34.1 48. 2 56.4 62. 3 81. 3 83. 9 585.5 1948 ______1948-49 16. 7 19.4 21. 9 33. 2 40. 4 45. 6 71. 7 76. 9 577.0 ;;iO ______1950 17.4 20.2 22. 7 34. 3 41. 8 47.2 73.9 79.1 580.0 1951 19. 3 22. 3 25. 1 37. 8 46.0 51. 9 80. 5 85. 7 Ii 87. 0

*Less than 50 cents. 1 Includcs defense tax. 2 Tax liabilities for the years 1942 and 1943 are unadjusted for transition to current-payment basis. a Includes net Victory tax. Computed by assuming that deductions are 10 percent of Victory tax 1J.et income; i. e'1 that Victory tax net income is ten-ninths of selected net income. 4 lndividual Income Tax Act of 1944. b Taking into account the following maximum effective rate limitations: For 1943-45, 90 percent; 1946-47, 85.5 percent; 1948-49, 77 percent; 1950, 80 percent; 1951, 87 percent. NOTE.-Maximum earned net income assumed. In the case of married persons it is also assumed that only one spouse has income .

• \ I 10 INDIVIDUAL INCOME,-TAX DATA I

TABLE 4.-Estimated distribution of taxable individual in~ome tax returns, income and tax liability under present rateJ and those proposed by the Treasury for calendar year 1951 I (For distributions of tax liability under alternatives suggested by the staff of the Joint Committee on Internal Revenue Taxation, see part 15) , PART A-ESTIMATES OF THE TREASURY DEPARTMENT Ii I

Total tax 2

Number of Adjusted I Adjusted grossincome class 1 taxable Increase under' 1 Ra-tes pro- returns gross income rates proposed Present law posed by the by the Treasury Treasury

Thousands :Millions Millions Millions J\,Iillions Under $1,000_-______------'-_ - __ ------_ 1, 526. 2 $1, 244 $38 $46 $8 $1,000 to $2,000 ______- _- _- __ '___ - _- ______5,899.6 9,227 712 855 142 $2,000 to $3,000 ______9,453.2 23,851 1,829 2, 194 366 $3,000 to $4,000 ______,______9, 943. 3 34, 623 2, 784 3, 338 555 $4,000 to $5,000 ______,______7,103.8 31, 577 2,913 3,492 579 ----- Under $5,000 ______.__ ,______,______33,926. 1 100,'520 8,276 9, 925 1, 649

$5,000 to $10,000 ______,_____ 6,301. 0 41, 253 5,005 5, 972 967 $10,000 to $25,000 ______,______1, 501. 1 21, 848 3,992 4,655 663 $25,000 to $50,000 ______~ ____ ,______244. 3 8,170 2,308 2, 583 275 $50,000 to $100,000 ______:.. ____ --- 72. 2 4, 871 1, 941 2, 100 159 $100,000 to $250,000 ______20. 2 2, 893 1,465 1, 554 90 $250,000 to $500,000 ______,______2.4 818 473 495 22 $500,000 to $1,000,000_, ______~ __ -______,___ .6 430 257 267 10 $1,000,000 and over __ ,______,______,______.2 393 254 264 10 ------$5,000 and over ______8, 142. 2 80,675 151 695 17,890 2,196

TotaL ______42,068.3 181, 196 23,971 27,815 3,84,

PART B.-ESTIMATES OF THE STAFF OF THE JOINT COMMITTEE ON INTERNAL REVENUE TAXATION

Under $1,000 ______1, 868. 1 $1,556 $54 $1,000 to $2,000 ______6,991. 1 10, 875 842 $2,000 to $3,000 ______10, 908. 0 27,275 2,245 $3,000 to $4,000 ______9, 830. 8 33,462 2,871 $4,000 to $5,000 ______6,262.8 27,905 2,672

Under $5,000 ______35,860.8 101,073 ~ , 684 ______

$5,000 to $1 0,000 ______6, 645. 7 42, 850 5,080 $10,000 to $25,000 ______1,342.9 19,470 3,488 $25,000 to $50,000 ______247. 1 8,200 2,289 $50,000 to $100,000 ______70. 1 4, 675 1,862 $100,000 to $250,000 ______18.3 2, 559 1,276 $250,000 to $500,000 ______2.0 647 378 $500,000 to $1,000,000 ______.5 316 192 $1,000,000 and over ______.2 310 206 1------1-----1------$5,000 and over ______,__ _ 8,326.7 79,027 14, 771

TotaL ______---- ______44,187.5 180, 100 23,455

1 Returns of estates and trusts are classified by size of total income before deduction of amounts distributablo to bcneficiaries. 2 Includes surtax, normal tax, and alternative tax. NOTE.-Figures aro rounded and will not necessarily add to totals. INDIVIDUAL INCOME-TAX DATA 11

TABLE 5.-Estimated surtax· net income, and combined normal tax and surtax, distributed by surtax 'net income brackets, for calendar year 1951

A. ESTIMATES OF THE TREASURY DEPARTMENT

Total Total Surtax net income bracket (in Surtax net income bracket (in . thousands) Surtax net Surtax and nor- thousands) Surtax net Surtax and nor- income mal tax I income mal tax I -- Millions :Millions Millions lvIillions $0 to $2 ______.:. ____ $63,621 $12, 724 $32 to $38 ______-'_-' $446 $290 $2 to $4-______13, 277 2,921 $38 to $44 ______317 219 $4 to $6 ______5,720 1,487 $44 to $50 ______255 184 $6 to $8 ______.:. ____ 2,964 889 $50 to $60 ______280 210 $8 to $10 ______1,977 672, $60 to $70 ______190 148 $10 to $12 ______!,419\ 539 $70 to $80 ______135 109 $12 to $14 ______11,049 451 $80 to $90 ______100 84 $14 to $16 ______794 373 $90 to $100 ______84 73 $16 to $18 ______640 320 $100 to $150 ______207 1184 $18 to $20 ______512 271 $150 to $200 ______97 87 \ $20 to $22 ______417 234 Over $200 ______.:. ______300 273 $22 to $26 ______649 ! 383 $26 to $32 ______Total ______~65 412 96,115 23,537 ~

B. ESTIMATES OF THE STAFF OF THE JOINT COMMITTEE ON IN'fERNAL REVENUE TAXATION

$0 to $2 ______$68, 286 $13, 857 $32 to $38 ______419 272 '$2 to $4 ______~ __ 10,826 2, 382 $38 to $44 ______300 207 $4 to $6 ______4, 300 1,118 $44 to $50 ______219 158 $6 to $8 ______'______2,619 786 $50 to $60 ______216 162 $8 to $10 ______1,817 618 $60 to $70 ______144 112 $10 to $12 ______1,310 498 $70 to $80 ______104 84 $12 to $14 ______1,020 439 $80 to $90 ______76 64 $14 to $16 ______714 335 $90 to $100 ______57 50 $16 to $18 ______598 299 $100 to $150 ______151 135 $18 to $20 ______509 - 270 $150 to $200 ______69 62 $20 to $22 ______402 225 Over $200 ______167 152 $22 to $26 ______654 386 $26 to $32 ______652 405 TotaL ______96, 631 23,075

1 Does not take into account maximum effective rate limitations, NOTE.-Figures are rounded and will not necessarily add to totals. 1 I !

12 INDIVIDUAL INCOME-TAX DATA i I TABLE 6.-Individual income tax rate schedules under the Revenue Acts of 19J,.J,., 19J,.5, 19J,.8, and 1950, compared withrates,I' proposed by the Secretary of the Treasury

(For rates of alternatives suggested by the staff of the Joint Committee on Internal Revenue Taxation, see part 15)

1944 act 1950 act Rates pro- ! (highest posed Surtax net income 1945 act I 1948 act 1 wartime by the I rates) - 1950 I HI51 Treasury

Percent Percent Percent Percent Percent Percent I $0 to $2,000 ______23 19.00 16.60 17.40 20 241 $2,000 to $4,000 ______25 20. 90 19. 36 20. 02 22 26! $4,000 to $6,000 ______29 24. 70 22. 88 23. 66 26 30' $6,000 to $8,000 ______33 28. 50 26.40 27.30 30. 34'

$8,000 to $10,000 ______.:. ______-; _____ 37 32.30 29.92 30. 94 34 38 $10,000 to $12,000 ______41 36. 10 33.44 34. 58 38 421 $12,000 to $14,000 ______46 40. 85 37. 84 39. 13 43 47 $14,000 to $16,000 ______50 44. 65 41. 36 42. 77 47 51

$16,000 to $18,000 ______53 47. 50 44.00 45. 50 50 54 1 $18,000 to $20,000 ______56 50. 35 46. 64 48. 23 53 57! $20,000 to $22,000 ______59 53. 20 49. 28 50. 96 56 60 $22,000 to $26,000 ______62 56.05 51. 92 53. 69 59 63

$26,000 to $32,000 ______65 58. 90 54. 56 56. 42 62 66 $32,000 to $38,000 ______68 61. 75 57. 20 59. 15 65 69 $38,000 to $44,000 ______72 65. 55 60. 72 62. 79 69 73 $44,000 to $50,000 ______75 68. 40 63. 36 65. 52 72 76

$50,000 to $60,000 ______78 71. 25 66.00 68. 25 75 79 $60,000 to $70,000 ______81 74. 10 68. 64 70. 98 78 82 $70,000 to $80,000 ______84 76. 95 71. 28 73. 71 81 85 00 $80,000 to $90,000 ______87 79. 80 73. 92 76.44- 84 uu

$90,000 to $100,000 ______90 82. 65 76. 56 79.17 87 91 $100,000 to $136,719.10 ______} 78. 32 80. 99 92 84. 55 89 93 $136,719.10 to $150,000 ______{ 80. 3225 82. 503 } $150,000 to $200,000 ______93 85. 50 81. 2250 83.430 90 94 $200,000 and over 2 ______94 86.45 82: 1275 84. 357 91 95

1 Aftcr reductions from tentative tax. 2 Subject to the following maximum rate limitations; Revenue Act of 1944, 90 percent; Revenue Act of 1945, 85.5 percent; Revenue Act of 1948,77 percent; rates for 1950, 80 percent; rates for 1951, 87 percent. INDIVIDUAL INCOME-TAX DATA 13

TABLE 7.-Comparison of individual income-tax liabilities under present law 1 and proposed by the Secretary of the Treasury (For burden distributions under alternatives suggested by the staff of the Joint Committee on Internal Revenue Taxation, see part 15)

SINGLE PERSON-NO DEPENDENTS

Amounts of tax Effective rates Increase over present law Tax increase as percent of- Net income before exemption Effective Net income Present law Proposed rates Present law Proposed rates Amount of tax Present law after present rates tax law tax

Percent Percent Percent $800_~ ______$40 $48 5.0 6.0 $8 1.0 20.0 1. 1 $1,000 ______80 96 8.0 9.6 16 1.6 20.0 1.7 $1,500 ______180 216 12.0 14.4 36 2.4 20.0 2. 7 $2,000 ______280 336 14.0 16.8 ~ 56 2. 8 20. 0 3. 3 $3,000 ______488 584 16.3 19.5 96 3. 2 19.7 3. 8 $5,000 __ ~ ___ -_~ _____ 944 1,120 18.9 22. 4 176 3.5 18. 6 4.3 $8,000 ______1,780 2,076 22. 3 26.0 296 3. 7 16.6 4. 8 $10,000 ______2,436 2,812 24.4 28.1 376 3. 8 15.4 5.0 $15,000 ______4,448 5,024 29. 7 33. 5-~ 576 3. 8 12. 9 5. 5 $20,000 ______6,942 7,718 34. 7 38.6 7'76 3. 9 11. 2 5.9 $25,000 ______9,796 10,772 39.2 43. 1 976 3. 9 10.0 6.4 $50,000 ______26,388 28,364 52.8 56. 7 1,976 4.0 7. 5 8.4 $100,000 ______66, 798 70, 774 66. 8 70. 8 3,976 4. 0 6.0 12.0 $500,000 ______. 429,274 ,449,250 85.9 89. 9 19,976 4.0 4. 7 28.2 $1,000,000 ______2 870,000 3 900,000 287.0 3 90.0 30,000 3.0 3. 4 23. 1

MARRIED PERSON-NO DEPENDENT

$1,500 ______$60 $72 4. 0 4. 8 $12 O. 8 20. 0 O. 8 $2,000 ______160 192 8. 0 9.6 32 1.6 20. 0 1.7 $3,000 ______360 432 12.0 14.4 72 2.4 20. 0 2.7 $5,000 ______760 912 15.2 18. 2 152 3. 20.0 3.6 $8,000 ______1,416 1,688 17.7 21. 1 272 3. °4 19.2 4.1 $10,000 ___ .- ______1, 888 2, 240 18.9 22. 4 352 3.5 18.6 4. 3 $15,000 ______3, 260 3, 812 21. 7 25.4 552 3. 7 16.9 4. 7 $20,000 ______. ------~- 4, 872 5, 624 24.4 28. 1 752 3.8 15.4 5. ° $25,000 ______6, 724 7, 676 26.9 30. 7 952 3. 8 14. 2 5. 2 $50,000 ______19, 592 21, 544 39.2 43.1 1, 952 3.9 10. ° 6. 4 $100,000 ______52, 776 56, 728 52.8 56. 7 3, 952 7.5 8. 4 $500,000 ______4. ° 403, 548 423, 500 80. 7 84. 7 19, 952 4. ° 4. 9 20. 7 $1,000,000 ______858,548 898,500 85. 9 89. 9 39,952 4.0 4.7 28. 2

See footnotes at end of table. 14 INDIVIDUAL INCOME-TAX DATA

TABLE 7.~Comparison of individual income-tax liabilities under present law 1 and proposed by the Secretary of the Treasury-Continued

MARRIED PERSON-2 DEPENDENTS

$3,000 ______$120 $144 4.0 4.8 $24 0.8 20. 0 O. 8 $5,000 ______520 624 10.4 12.5 104 2.1 20. 0 2.3 $8,000 ______1, 152 1,376 14.4 17.2 224 2.8 19.4 3. 3 $10,000_~ ______1, 592 1,896 15.9 19.0 304 3. 0 19. 1 3. 6 $15,000 ______2, 900 3,404 19.3 22.7 504 3.4 17.4 4. 2 $20,000 ______4,464 5, 168 22. 3 25. 8 704 3.5 15.8 4. 5 $25,000 ______6, 268 7,172 25.1 28.7 904 3.6 14. 4 4. 8 $50,000 ______18, 884 20,788 37. 8 41. 6 1,904 3.8 10.1 6.1 $100,000 ______51,912 55,816 51. 9 55. 8 3, 904 3.9 7.5 8.1 $500,000 ______402,456 422,360 80. 5 84. 5 19, 904 4. 0 4.9 20. 4 $1 ,000,000 ______857,456 897,360 85. 7 89.7 39, 904 4. 0 4.7 28. 0

- 1 , rates applicable to 1951 incomes. 2 Taking into account maximum effective rate limitation of 87 percent. 3 Taking into account maximum effective rate limitation of 90 percent. NOTE.-Assumes all income is owned by one spouse. o

.'